Monday, April 16, 2018

Was the Loaf into tax evasion or money laundering for politics?

Fearing his detractors would say he could not run even a kedai roti to succesed, let alone his endless list of past failed ventures that accumulated to hundreds of billions at today's value, Tun Dr Mahathir's first reaction was to deny it was his.

A lie like that could never go far. Not with much fanfare to launch Mahathir's Japanese bread venture. There are just too many news reports of the bread outlet that was first launched at Telaga Harbour Langkawi.

There is always Mahathir at every other launch of new outlets. And, it is impossible to deny the ROC documents below:

Unless you are old enough, you would not know of a Suzuki.

He was the arranger for Japanese companies coming into Malaysia and Japanese famous personalities like Kenichi Ohmae which Mahathir wish to meet to raise his international profile.

Subject to conformation, the Suzuki in this venture is suspected to be family members of his Japanese crony.

Unlike other cronies, the late Mr Suzuki and Singaporean RIn Kin Mei of Proton fame could walk into the PM's office without registering at the guard house. .

More embrassing for Mahathir, his majority owned The Loaf lost money for the last 12 years since its inception.

Then he performed this classic stunt of U turns:

Obviously, Mahathir has busines interest in many more companies than only his 200 shares in a tobacco company, including a company that owns the jet he used for his high life travelings. .

The Sunday lie is a classic. FMT reported:

Dr M: Selling off The Loaf could have rolled in election dough

FMT Reporters | April 15, 2018

But the PPBM chairman says he could not find a buyer for his bakery business.

PETALING JAYA: Dr Mahathir Mohamad said he had wanted to sell bakery franchise The Loaf to help fund his party’s election campaign, but could not find a buyer.

“I couldn’t find a buyer … and I couldn’t support the losses so, I decided to close it down,” he was quoted as saying by Singapore’s The Straits Times during a walkabout in Langkawi yesterday.

The former prime minister who now heads the four-party Pakatan Harapan opposition coalition, said one prospective buyer had been approached by income tax officers who “demanded that he should pay a lot of taxes”.

“This is the way the government pressures people from supporting the opposition,” he told the paper.

The Loaf, which opened its first outlet in Langkawi in 2006, ceased operation on Apr 12.

“Thank you very much for enjoying and supporting the Loaf and our breads all these long years. We are truly happy and proud of the fact that the Loaf has been able to contribute to the betterment of quality of breads and bakery industry in Malaysia,” said a notice posted on social media last week.

Yesterday, Mahathir denied owning a stake in the business.

“I only have some 200 unit shares with a tobacco company and with PNB which were awarded to me when I launched PNB products (when I was PM), ” he had said.

Questions:

His company have been making losses for 12-year years and who in the world would buy such companies with worms inside, unless it is for a song?

Anyway his accumulated losses would have wiped out all their capital.

Since his intention is political, lets explore further as he blamed Dato Najib for his failure to sell his bakery. (Read Malaysian Digest here)

The Sabahkini 2 reported here that Mahathir blamed it on LHDN or Inland Revenue Board (IRB). If he is losing money, why would IRB be charging them for tax?

It only leads us to suspect The Loaf have been evading taxes and was slapped with a tax bill. But he should not blame Najib.

RPT as in related party transaction to create expenses to reduce profit or even create losses (which could happen in the case of The Loaf) to evade tax.

Retail outlets such as restaurants or retail franchises have been known to be the laundromat to cleanse money from crimes and other illegal activities by showing up in the books as revenues in some account books.

Such outlets sell under-priced goods to justify the volumes to hoodwinked taxman. The money could be taken out and into the system as legal through various ways including cashing out the company.

Why did The Loaf keep opening outlets despite losing money and only close down after tax man got to them and Mahathir's sons?

Why did he not hush up about selling The Loaf to bankroll the election? Was it a case of the kedekut Mahathir making excuse to insist candidates finance their own election campaign?

Nevertheless, it is a good hint of why vengeful Mahathir is fighting to the death to rid off Najib. Never bought the lofty excuse that it is for god, country and future generation. It never had been. Only too lengthy to explain.